Goldman Sachs Has Come Up Case Study

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Goldman Sachs has come up with a new and an innovative strategy for the times to come. It has given birth to a new marketing strategy aimed at Bric. The principal economist in this company introduced this new strategy which was focused on a few countries that had quite a few similarities. These countries were inclusive of Brazil, Russia, Indonesia and China. BRIC was the terminology used conclusively for all these four countries and they were perceived as emerging markets. It was suggested that companies look beyond USA markets to increase their own profits and ensure their survival in the cut-throat competition of today.

An assumption was made that USA was not only losing its popularity in the international community but its markets were also suffering because of this anti-American sentiment prevalent in Asia and Middle-Eastern countries. As a result of this, America's economy was also suffering and due to this, companies had to look into potential markets around the world to ensure their existence in their respective line of work. O' Neil not only saw potential in Bric but also believed that the economy of these countries will improve with time and there will be more scope and benefit of investment in these countries, as opposed to the established markets like USA. O' Neil had a vision that in the times to come, markets of Asia and Middle East would be in a far better condition than USA and this made investment in Bric not only a pre-requisite for success but also a necessity for ensuring survival.

A good number of companies and organizations were also interested in catering to the non-Western markets and this idea served as a fuel for them. The potential of the on-Western markets and the decline of the Western economy was the reason for this idea and strategy of O'Neil. Although these countries were not similar in culture, geography or religion but their population, state of their economy and willingness to venture into the global markets made them much more than a potential target market. The concept of domestification shows that is imperative for every bank to venture into the global market. This is how unmatched services and facilities can be given to the local clients.

This term is being increasingly used in the corporate markets, politics and also news media. The most important predicament for Goldman is to identify which markets in the emerging markets will actually achieve progress with time and not vice versa. Because, it is possible that these underdeveloped countries take more time in becoming financially stable or that internal/external disputes obstruct their path to economic improvement. In that scenario, it will be fatal to invest in such a market and bear losses of this magnitude.

Multiplied to that, the consequences of political instability and crime factor in these countries will not allow these countries to emerge as new markets. It is possible that they deal with these challenges head-on and bring everything under control, but it is again possible that the exact opposite occurs. Other than this, it is important to ensure that these countries support the ideology of Goldman. Goldman wishes to conquer the world ideologically and globally. But for this, all the factors have to be taken into consideration before coming to a conclusion about investment in any particular region.

The population of Brazil and China has been predicted to decrease with the increase in time. This is a major hurdle in the path of success. Brazil has recently experienced the epitome of inflation and perceiving a chance of development so soon is not practical. But despite that, O'Neil believes that Bric will emerge as a potential market and a huge number of investors will be looking for opportunities to invest in Asia. This is the opportunity that Goldman wishes to capture, in the pretext of this Bric development scheme it has come up with. Other than this, because of the lack of faith in the American economy, O'Neil has been criticized number of times but he still stands by his words and ideas and is adamant on the idea that this will happen by the year of 2032.

Although China and India have emerged as the main manufacturing nations whose potential had not been recognized up to now, it has been stated that the disregard of China and Russia about human rights and democratic rule could pose a serious threat to the development opportunities for these countries. Human rights issues are still prevalent in these countries. It is possible that a conflict occurs over Taiwan and the other small democratic areas which are existential around the two un-democratic countries. India has almost always been into war with its neighbour and that has decreased the scope of economic development and progress

Goldman will need to gain more trust in this Bric group as it is considered a very good potential market. To be able to venture into this important, it is important to assist these nations in various humanitarian, education or healthcare projects so that the authorities and the masses alike can trust Goldman, their donations and services. It has been assumed and forecasted, that the situation of Bric will improve and they will serve as potential markets in various fields and areas. The reality can be different from this because no one knows what will be happen in the next decade. Predictions can be successful or unsuccessful and investing on the basis of predictions can serve as a major blunder as opposed to a blessing.

The competitors of Goldman have also come to recognize this changing trend of economy in the underdeveloped countries and therefore, have taken numerous initiatives to establish themselves in the region. This goes for HSBC and Deutshe Bank both. They have introduced similar concepts and have taken a similar approach towards gaining access to this emerging market and investing in it for greater returns. This signifies the need for improved services, efficiency, strategies and schemes for Goldman if they want to be the pioneer in these emerging markets. They have to come up with more innovative approaches and ideas for this concept to become a reality.

Goldman wishes to extend its operations outside the confines of USA. The intention is not only to capture the emerging markets and utilize their needs for the maximum benefits of the company, but also to become a world leader in education and business on the global scale. The economy of USA is not improving and the markets of USA also do not promise a good potential for the times to come in the near future.

However, Bric promises a potential market and it also seems to be improving on the economic front. With more avenues to explore, more markets to venture into and more potential customers/client than ever before, it is definitely the best bet for Goldman. In addition to this, if it can successfully transfer its values, increase its business and also become a world leader in business, the emerging markets will show more potential in various areas. As long as this belief of Goldman holds ground, that the economies and conditions of these underdeveloped countries will improve in the times to come, this is the best opportunity for Goldman.

As it has been observed, Bric did far better in the economic crisis as compared to other established and developed countries. They were able to deal with this crisis and emerged successful than before. If we consider the Western world, their economies have still not emerged from this credit crisis and are still working on how to overcome its effects. This term is used for all kinds of purposes and dealings when it concerns Brazil, Russia, India and China. Goldman has numerous competitors in the Bric.

The local banks are not much of a threat but the international ones really pose a threat for Goldman. The environment for business is still not stable enough because there are a lot of crises going on currently in Bric region. It can be termed as political turmoil, financial crisis or even crime issues. In addition to this, the investors are also worried about the reaction and acceptance of the authorities and the locals of the area. China and Russia are very stable options for investment but the anti-American sentiment is posing as a hurdle to the entire process.

(Marr & Reynard, 2010)However, as there are no companies like Goldman serving the region of Bric just yet, it will prove to be feasible for them to venture into this market. The environment is perfect for investment because despite the fact that there are a few instabilities, the opportunities of investment are numerous. Land, business, corporate or any kind of educational institutions can be invested upon. Not only these but educational programs of varying levels and degrees can also be introduced, healthcare programs can also be introduced into the mainstream humanitarian social work. However the best way to go about this would be to join hands with corporate pioneers and… [END OF PREVIEW] . . . READ MORE

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Goldman Sachs Has Come Up.  (2011, September 9).  Retrieved January 26, 2020, from https://www.essaytown.com/subjects/paper/goldman-sachs-come-up/997252

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